Rajasthan approves policy to scrap vehicles older than 15 years with tax discounts

The Hindu
The Hindu
17m ago
4 views
Rajasthan's new vehicle scrapping policy offers up to 50% tax discounts on new vehicles to owners who scrap vehicles older than 15 years, promoting a circular economy and supporting raw material supply to industries.
Rajasthan approves policy to scrap vehicles older than 15 years with tax discounts
A What happened
Rajasthan approved a new vehicle scrapping policy to phase out old and polluting vehicles using digital certification. Vehicles older than 15 years qualify, with buyers receiving up to 50% discount or ₹1 lakh off motor vehicle tax on new purchases. The policy supports the circular economy, providing raw materials to sectors like automobile and steel while including investment incentives for scrapping units. The state also revised the oil refinery cost proposal at Pachpadra, fixing the project's equity stake at 26% and planning commissioning in January 2026.

Key insights

  • 1

    Environmental and economic benefits: The policy is designed to reduce pollution while supporting industries through recycling and cheaper raw materials.

  • 2

    Investment incentives: Registered scrapping units will receive subsidies, tax exemptions, and reduced electricity costs to encourage investment.

Takeaways

Rajasthan’s policy aims to improve air quality and promote circular economy principles while advancing a major local refinery project, demonstrating integrated development efforts.

Topics

World & Politics Policy & Regulation Climate & Environment Energy Development

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